Top Headlines

GFXC Survey Confirms Increased Code Adoption, But Work Still Required – Profit & Loss

The 2018 FX Global Code Survey results have been released and while, expectedly, the last year saw significantly increased adoption rates amongst firms, there are areas of potential concern for proponents of the Code.

In the FICC of It – Profit & Loss

The podcasters discuss the benefit (or otherwise) of closer links between retail and institutional FX markets and the release last week of two reports from Global FX Committee Working Groups on disclosures and “cover and deal” operators using last look. The podcasters also take a look at the GFXC’s annual survey of opinions on the FX Global Code.

“To Re-Paper or Not Re-Paper – That is the Question” (opinion) – Profit & Loss

There is a sense of entitlement – thanks in part to the marketing of the liquidity providers themselves – that “there should always be a price for me”. Most of the time there is, of course, but occasionally there isn’t and normally this is around liquidity events.

Market Structure “Strikes the Right Balance”: CME – Global Investor (subscription)

CME Group remains confident in existing market structure amid the debate about speed bumps.

The EU Risks Allowing US to Grab Slice of UK’s Clearing Industry – The Telegraph (subscription)

The UK could lose a slice of its valuable clearing industry to the US if the EU tries to win advantage by reneging on G20 promises to avoid breaking up financial markets.

Regulatory News

Europe to Recognise LCH, ICE & LME as CCPs in ‘No-Deal’ Brexit – The Trade

UK clearinghouses LCH, ICE Clear Europe and LME Clear have been granted approval to continue providing clearing services in Europe in the case of a ‘no-deal’ Brexit, Europe’s financial regulator has confirmed.

Brexit Novations ‘On Hold’ to Gain Reg Relief – (subscription)

A mass migration of bilateral swaps contracts from London to new European Union hubs is effectively on hold until after the March 29 Brexit date, as regulatory relief protecting transferred contracts from costly clearing and margin rules only becomes effective from the exit date and is conditional on a no-deal scenario. 

Deal or delay? Wall Street Doesn’t Believe No-Deal Brexit Threat – Reuters

As the United Kingdom’s Brexit crisis deepens, Goldman Sachs and JP Morgan have differing views of the ultimate outcome but the two titans of Wall Street agree on one thing: They don’t believe there will be a no-deal Brexit.

Crypto News

Crypto Markets Turn Traditional for Tools of the Trade – WatersTechnology (subscription)

As interest in cryptocurrency trading refuses to wither, despite a bearish year, traders are increasingly calling for institutional-grade tooling from traditional markets to further develop the asset class.

Bitcoin Price Passes $3,700 to Hit One-Month High – CoinDesk

Bitcoin’s high-volume move to one-month highs could be the start of a stronger rally to above key resistance near $3,760.

Crypto Securities Are Years Away from Mainstream, Technologists Say – CoinDesk

Despite a growing mainstream interest in the use of crypto assets and blockchains as a way to replicate and represent securities, some of the earliest innovators say sky-high expectations may not be in line with reality.

Company News

P&L Talk Series: State Street’s Kate Lowe – Profit & Loss

Kate Lowe, global head of trade services at State Street, talks about how new margin requirements could shape buy side behaviour in the FX market, and why 2019 is likely to be a “staging” year for many of these firms.

SGX Starts 2019 with Record FX Volumes – Profit & Loss

Trading on SGX’s FX futures hit an all-time record in January, with $105 billion in notional value and 1.87 million in aggregate contracts traded.

Goldman FX Traders Exit to Establish Sports Betting Site – Profit & Loss

Two FX traders at Goldman Sachs have left the firm to set up a sports betting site called Sportstack.

Kace Pro Adds FX Options Streaming – FX Week (subscription)

Fenics Software has updated its Kace Pro technology to allow owners to stream foreign exchange options prices to internal and external clients, as well as execution venues, and third-party and single-dealer platforms.

Market Savvy

Pound Rises after Three Weeks of Losses – Reuters

Sterling drifted higher on Monday after registering three consecutive weeks of losses as investors waited for the outcome of Brexit talks between Britain and the European Union.

Euro Lifted from Lows on US-China Trade-Talk Optimism – Reuters

The euro rose past $1.13 and riskier currencies like the Australian dollar strengthened on Monday as optimism over a breakthrough in US-China trade war talks encouraged investors.

How Worried Should We Be About a US Economic Slowdown? – Financial Times

The euro and the dollar are locked in a tug of war, each bearing challenges around economic growth, central bank policy, and political risk. The yen is also in thrall to US monetary policy, though investors such as UBS Wealth are increasingly turning to the view that it is undervalued and due a rally.